Kizspy | Question: 37
(Choose 1 answer)
How does a commercial letter of credit differ from a standby letter of credit?
A. A commercial letter of credit guarantees payment in case of non-performance, while a standby letter of
credit guarantees performance.
B. A commercial letter of credit is used for payment for goods, while a standby letter of credit is used as a
backup guarantee.
C. A commercial letter of credit is issued by the buyer's bank, while a standby letter of credit is issued by the
seller's bank.
D. A commercial letter of credit can be used only for large transactions, while a standby letter of credit is for
small transactions.
